Kalpataru Projects International Limited - Q1 FY27 Earnings Call Summary Tuesday, August 11, 2026 5:00 PM IST
Event Participants
Executives
5 Amit Uplenchwar, Manish Mohnot, Ram Patodia, S.K. Tripathi, Sanjay Dalmia
Analysts
9 Amit Anwani, Anuj Upadhyay, Arafat Saiyed, Bharat Sheth, Bhavin Modi, Jainam Jain, Kishan Mundhra, Parikshit Kandpal, Vaibhav Shah
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Order Book | ₹66,607 crores | Highest ever; supported by YTD inflows of ₹7,668 crores and ₹7,500 crores in L1 positions |
| Order Inflow (YTD FY27) | ₹7,668 crores | Including L1, ~₹15,000 crores in hand; on track for ₹30,000 crores FY27 target |
| Revenue (Consolidated) | ₹6,408 crores | +9% YoY on adjusted basis (ex-Brazil, road SPVs); standalone ₹5,482 crores, +9% YoY |
| EBITDA (Consolidated) | ₹562 crores | +7% YoY; margin 8.8% (+30 bps YoY); standalone margin ~9%, +14% YoY |
| PBT (Consolidated) | ₹420 crores | +45% YoY; margin 6.6% (+190 bps YoY); standalone PBT +32% |
| PAT (Consolidated) | ₹312 crores | +46% YoY; standalone PAT +32% |
| Net Debt (Consolidated) | ₹917 crores | Stable QoQ; standalone ₹752 crores; D/E ratio 0.1x |
| Working Capital Days (Consolidated) | 80 days | Down 11 days YoY; standalone 94 days, down 12 days YoY |
| ROCE | 21-22% | Maintained within targeted range |
| CapEx (Q1 FY27) | ₹250+ crores | FY27 guidance of ~₹800 crores |
Geographic & Segment Commentary
Transmission & Distribution (T&D): Like-for-like revenue grew ~10% YoY (ex-fastener). YTD orders exceeded ₹4,100 crores with L1 positions over ₹5,000 crores. Addressing a domestic market of ₹1-1.25 lakh crores annually for 5 years, with HVDC and GIS substations as growth areas; expanding into new clients globally.
LMG Sweden (International): Revenue grew 8% YoY to ₹833 crores. Secured ~₹1,500 crores in YTD orders, bringing backlog to ~₹4,200 crores. Capturing grid capacity demand across Europe and middle markets.
Building & Factories (B&F): Revenue grew 15% YoY; record YTD orders of ₹2,800+ crores with L1 of ~₹2,200 crores; order book at ₹19,600+ crores. Pipeline driven by PSU/private industrial CapEx, data centers, airports, and urban development. EBITDA margins in 10-12% range.
Oil & Gas: Saudi pipeline project executing well; Middle East focus on Aramco, ADNOC, Kuwait, Qatar. Bids ranging $100-500 million; order wins expected in Q3 FY27 (or late Q2). Multi-fold growth opportunity in onshore EPC.
Water: Revenue of ₹626 crores in line with plan; first Middle East order (₹344 crores) secured. YTD collections ~₹650 crores; domestic receivables (bill+unbilled) ~₹1,500+ crores; not bidding new domestic tenders until collections improve. Jio order book ~₹4,000 crores.
Urban Infra & Railways: Metro execution robust with all 6 TBMs fully utilized; Kanpur tunnel nearly complete. Selective on new bidding; exploring metro, tunneling, pump storage, nuclear, and international roads. Railway focused on closure, selectively bidding.
Company-Specific & Strategic Commentary
Credit Rating Upgrade: Upgraded to AA+ (stable), placing KPIL among elite large-scale EPC players, reinforcing confidence in growth and capital strategy.
Backward Integration: Announced setting up a rolling mill in Raipur; continuously exploring backward integration across other value-chain products to improve margins and drive growth.
Long-term Growth Levers: Three-pronged strategy – taking domestic strengths (water, urban infra, oil & gas) international; backward integration; increasing average project size (>₹500 crores) via enhanced capabilities in data centers, airports, and industrial plants. Order book provides ~2.5 years revenue visibility.
CapEx & Capability Building: FY27 CapEx guidance of ~₹800 crores; ₹2,500-3,000 crores invested over last 4 years, supporting execution capabilities on complex projects.
Data Centers: Qualified for civil and MEP; 2 completed, 3rd in progress; tenders from domestic and international developers; expecting few wins in next 6-9 months.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Order Inflow (FY27) | ₹30,000 crores target; possible upward revision | YTD + L1 at ~₹15,000 crores; delays in global order placement may shift revision to end of Q2 |
| Revenue Growth (FY27) | At least 15% on annualized basis | Confirmed, despite Middle East conflict and labour shortages |
| PBT Margin Improvement (FY27) | >75 bps YoY | Q1 ahead of target; driven by T&D, B&F, oil & gas margins; commodity movement within 5-10% manageable |
| Working Capital Days (FY27) | Current run-rate maintained | Consolidated 80 days; continued improvement expected from business mix and collections |
| CapEx (FY27) | ~₹800 crores | On track, possibly slightly higher |
Risks & Constraints
| Risk | Context |
|---|---|
| Middle East Conflict & Supply Chain | Disruptions impacting global supply chains; management notes mitigation through diversified order book and strong delivery record; execution remains resilient |
| Water Receivables | ₹1,500+ crores bill+unbilled (Jio project); collection slower than desired; management has paused domestic water bidding until collections normalize; improved YTD collections of ₹650 crores |
| Labour Shortages | State elections caused early-quarter labour availability constraints; management notes these were temporary and managed via diversification across geographies |
| Commodity Price Inflation | Steel, diesel, and aggregate prices; steel stable, diesel/aggregate have some impact; management believes 5-10% movement manageable through project contingencies |
| Competitive Intensity (Africa) | African market seeing increased Indian and Chinese competition, pressuring margins; Africa ranked 4th priority market |
| NHAI Arbitration Uncertainty | Arbitration award set aside on technical grounds for revisiting baseline assumptions; potential positive for KPIL but not booked; zero carrying value, zero debt on project |
Q&A Highlights
Oil & Gas Order Pipeline
- Question: Update on larger Saudi orders (e.g., Aramco) and target inflows for oil & gas? (Vaibhav Shah, JM Financial)
- Answer: Qualified with major Middle East utilities (Aramco, ADNOC, Kuwait, Qatar); bids ranging $100-500 million; order wins expected within 3-6 months (Q3 or late Q2 FY27), included in ₹30,000 crores target. (Manish Mohnot)
Working Capital & Interest Cost
- Question: Is ~₹65-68 crore quarterly interest cost the sustainable run-rate? Also, working capital management for FY27? (Vaibhav Shah)
- Answer: Interest cost should remain in this range as % of sales; if working capital increases, absolute interest may rise slightly. Confirmed maintaining current working capital day trend for FY27. (Manish Mohnot)
Margin Guidance & Segment Contribution
- Question: Which segments drove better Q1 margins, and are they factored into the 75 bps PBT guidance? (Amit Anwani, PL Capital)
- Answer: T&D, B&F, and oil & gas delivering ~10-12% EBITDA margins; water, railways, urban infra at high single-digit. The 75 bps improvement will come primarily from the three stronger segments. (Manish Mohnot)
Middle East Inflows & LMG IPO
- Question: Will Middle East orders become disproportionate to inflows? Is it only T&D or also other segments? Also, LMG IPO progress? (Amit Anwani)
- Answer: Bullish on both oil & gas and T&D in Middle East; total order values will be reasonable size adding visibility. LMG: advisors appointed to explore fundraising options; no further update. (Manish Mohnot)
T&D Market Outlook & International Priorities
- Question: Which geographies will drive T&D growth over the next 2-3 years? (Bharat Sheth, Quest)
- Answer: LatAm (excluding Brazil), Europe (via LMG), and Middle East are priorities; Africa ranked 4th due to rising competition. Middle East becoming more bullish due to recent developments. Domestic T&D market of ₹1-1.5 lakh crores annually for 5 years, driven by HVDC and renewables. (Manish Mohnot)
B&F Landscape & Margins
- Question: How is the B&F landscape shifting, and what are the margin differentials between residential and industrial? (Bharat Sheth)
- Answer: Industrial CapEx (PSUs like NMDC, NALCO) and data centers/airports driving growth; residential/commercial remain attractive. Margins average 10-12% across both; project-specific variations. (Manish Mohnot)
Long-term Growth Strategy (Beyond FY27)
- Question: With revenue likely hitting ₹27-28,000 crores this year, how will KPIL sustain 15% growth given a strong balance sheet? (Parikshit Kandpal, HDFC Securities)
- Answer: Growth levers – internationalizing water, urban infra, oil & gas; backward integration (e.g., Raipur rolling mill); enhancing value chain to target larger projects (average >₹500 crores); adding new capabilities (BESS, hydro). Current order book provides ~2.5 years visibility. (Manish Mohnot)
NHAI Arbitration Update
- Question: NHAI got court reprieve – what is the context and expected award/cash flow impact? (Parikshit Kandpal)
- Answer: Award set aside on technical grounds (baseline assumptions) to be revisited; not fully set aside. Carrying value is zero, project handed to NSEI; zero debt on books. Any future award is purely positive; not booked in P&L until final and uncontested. (Manish Mohnot)
Margin Resilience & Commodity Exposure
- Question: Despite commodity inflation and labour shortages, how did KPIL maintain higher margins versus peers? (Arafat Saiyed, Dolat Capital)
- Answer: Diversified order book, large-scale projects, robust plant operations, deep-dive planning, and tight working capital management. ₹2,500-3,000 crores CapEx over 4 years built execution capabilities; when domestic faced challenges, international markets compensated. (Manish Mohnot)
Water – Middle East Entry & Domestic Receivables
- Question: What does the first Middle East water order open up, and how is domestic recovery progressing? (Jainam Jain, DAM Capital)
- Answer: Now qualified with large ME developers; bidding on plants, pipelines, desalination projects. Domestic bill+unbilled at ~₹1,500 crores; Jio book ~₹4,000 crores, significant portion to be delivered this year. Collections improving; not bidding new domestic tenders for 6-9 months. (Manish Mohnot)
Key Takeaway
In Q1 FY27, KPIL delivered record standalone revenue of ₹5,482 crores (+9% YoY) and consolidated EBITDA of ₹562 crores (margin 8.8%, +30 bps YoY), with PAT up 46% to ₹312 crores, despite labour shortages and Middle East supply chain disruptions. The order book scaled to a record ₹66,607 crores, supported by ₹7,668 crores YTD inflows and ₹7,500 crores L1 positions, keeping the company on track for its ₹30,000 crores FY27 inflow target and at least 15% revenue growth. Management confirmed the PBT margin improvement guidance of over 75 bps, with Q1 already ahead. Strategic priorities include Middle East expansion across oil & gas, water, and T&D; backward integration (Raipur rolling mill); CapEx of ~₹800 crores; and LMG subsidiary fundraising. Key watch points include water receivables of ~₹1,500 crores, potential upward revision in order inflow guidance at end of Q2, and sustained margin delivery amidst commodity volatility. With the AA+ rating upgrade and 0.1x D/E, the company is positioned for disciplined, long-term growth over the next 2-3 years.